Project Part 1 (PP1) consists of performing application-oriented
exercises wherein the specific economic principles learned in
this course are put to practical use. You must translate your ideas into
economic analysis using the specific economic theory
and economic terms contained in the TCOs covered in the course and
demonstrate that you are understanding and utilizing material from text chapters
covered up to this point in the course to receive full credit on the assignment.

You are being asked to submit a report containing responses to
three exercises. Exercise 1 entails a
choice of one topical microeconomic
issue out of two possible alternatives. Exercises 2
and 3 entail a choice of two
textbook questions out of a list of possible alternatives.

Exercise
1

Choose one of the following
two microeconomic issues:

Everyone’s Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Why
does this happen? Research the recent history of gasoline pricing in your area,
and attempt to relate any fluctuations you observe to documented supply and
demand factors outlined in our book. Be sure to cite any references
used.

Ethical Issues in Business. It seems that every day lately we are confronted with another company
that has acted at least unethically and possibly illegally in the operation and
financial reporting of their company’s business dealings. Briefly discuss one of
these issues and then see if you can relate the issue to ANY of our TCOs. That
is, are there any effects on demand or on supply related to this topic? How
would you expect this to affect the equilibrium price and equilibrium quantity
for this company’s products and services? Is the elasticity of demand or supply
affected? What about the effect on production levels and costs? Are ethical
issues more likely to occur in one market type rather than another market type?
You don’t have to cover all of these topics; I’ve just suggested some possible
connections to our TCOs. Any connection to our TCOs is fine here. Exercises 2 and
3

Select any two of the
following questions from the text:

Chapter 3, Question 14
Chapter 3, Question 15
Chapter 5, Question 17
Chapter 5, Question 18 Chapter 7, Question 15
Chapter 8, Question 11
Chapter 8, Question 14 Specifications

Discussion
Any questions, comments, or discussion about PP1
should take place in our Q & A forum area of the weekly Discussion area of
the course.
Reporting
All project submissions should
be prepared as Word documents suitable for electronic transmission. Your
PP1 report should consist of precisely five numbered pages. The first
page is a cover sheet having on it only your name, course name, and number
(Business Economics GM545), the academic term, and your e-mail address. After
that, the response to each of the three reported exercises should be on a
separate page. On each page, state the chapter
and question number before answering it. Do not print the full
question, as that would take up valuable space. Just list the chapter and
question number.

Page 5 is your References or Works Cited
Page. This does not replace in-text citations (with
quotation marks or paraphrasing) or footnotes.

Use double spacing for your response; your overall responses to any
exercise should not exceed one page in length (including the problem statement).
Font size is also optional, as long as it is reasonable; 10 pt. fonts
and 1/2 inch margins should be the minimum used.